Goodman Property first-half sales steady

Wednesday 10th November 2010

Goodman Property Trust posted little-changed first-half revenue and said increased finance costs eroded its distributable earnings.

Operating revenues were $53.1 million in the six months ended September 30, from $53.5 million a year earlier, the listed commercial and industrial properties owner and manager said in a statement. Distributable earnings fell to $37.3 million, from $38.5 million, reflecting a 3.1% increase in financing costs.

“The relatively stable performance, in a persisting low growth economic environment, reflects the robustness and scale of GMT’s $1.5 billion property portfolio with recent development completions and one acquisition largely offsetting the impact of earlier asset sales,” said chief executive John Dakin in the statement.

The trust said it focus on customer relationships had helped deliver stable portfolio performance, with an average occupancy rate of 95% and a weighted average lease term of 5.5 years as at September 30.

Dakin said significant work had been done to diversify and extend the trust’s capital base by renegotiating debt facilities of $331 million, issuing a seven year $45 million wholesale bond, and underwriting the distribution reinvestment plan for the September quarter, raising $17 million.

“GMT has a very active capital management programme and the variety of funding sources it can access reflects the strength of its balance sheet,” said Dakin.

The trust said it expects full year earnings to be 8.6 cents per unit, at the low end of its May guidance of 8.6 cents to 8.8 cents, reflecting the low growth operating environment and the impact of recent refinancing and investment activity.

The trust reported a net loss of $100.8 million in the first half, reflecting a one-off accounting adjustment of $131.7 million.

Under the Trust’s distribution policy, this earnings guidance equates to a full year cash distribution of 7.74 cents per unit. A second quarter cash distribution of 1.935 cents per unit has been declared, which is not imputed.

Shares were unchanged at 98 cents, and have lost 8.4% in value so far this year.

Businesswire.co.nz

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